Building brands is a complex process. It starts simply with product identification and goes far beyond to include considering a brand’s potential to embody human mission and philosophies in its positioning. Often, the process ends up with brands embodying values and philosophies that resonate with their target audiences emotionally and psychologically. Marketing experts have identified six levels of branding, ranging from functional aspects to representational elements.
1. Functional vs. Representational Branding
The six levels of branding exist along a spectrum from purely functional elements (such as name only) to representational branding that aligns with corporate mission and philosophies. Brands position themselves differently along the spectrum depending upon the maturity levels of their markets. With time, they consider transitioning to higher levels, seeking to create a lasting impact and forging meaningful connections with their consumers.
2. The Levels of Branding
Each level represents a distinct stage of brand development:
Name Only – “I am here”
At the most basic level, brands exist simply as names, and here branding functions to identify the products from their competitors. At this level, they don’t have significant associations or consumer expectations. This scenario often occurs in low-involvement categories, where customers do not think much about the product during purchase since the risks are low. Purchase decisions are usually driven by impulse, with the first brand that comes to mind (Top of Mind) being chosen. Examples include Naz Pan Masala, Shahi Sipari, Lemoon Paani, Super Crisp, and Poonam.
Product Attributes – “Reason to buy me”
Moving up the branding hierarchy, brands emphasize product attributes to differentiate themselves from the competition. This level emphasizes characteristics such as durability, strength, and efficiency in their communications. Examples include Samsonite, Duracell, Dawlance, Express, and Nippon, which highlight physical features such as reliability, durability, and strength.
Product Benefits – “Here’s what I can do for you.”
At this stage, brands focus on the benefits that they offer to their customers, which is crucial in their decision-making. Brands persuade customers about the advantages of using their products, such as Ariel (superior cleaning), Pampers (dry babies), KFC (delicious fried chicken), Mortein (insect control), and Head & Shoulders (protection from dandruff).
Psychological Territory/Benefits – “I am like you; you are like me.”
Brands at this level connect with consumers at a more personal level by aligning with their aspirations and desired self-image. Ultimately, these brands become an extension of their consumers’ identity. Strong examples include BMW (status), L’Oreal (self-indulgence), McDonald’s (happiness), Sooper (happiness), and Mountain Dew (risk-taking).
Human Values/Attitude/Way of Life – “I think like you do.”
Brands at this level reflect and shape consumer lifestyles and values. This is where branding transcends product benefits to become part of consumers’ belief systems. Examples include Nike (winning spirit), Coca-Cola (happiness ), Dove (real beauty), Virgin (anti-establishment), and Harley-Davidson (rebellion).
Mission/Philosophy – “I change things you would like to.”
At the highest level, brands transcend business to embody a philosophy that influences society at large. These brands inspire change and often stand for social causes, innovation, or significant cultural movements. Examples of brands at this level include BT (It’s good to talk), The Body Shop (ethical beauty), Apple (whatever we do, we believe in doing it differently), and Google (organizing the world’s information and making it readily accessible).
3. The Strategic Importance of Branding Evolution
Understanding the various levels of branding is essential for businesses that aim to build strong, reliable brands. Brands can gain several advantages by transitioning from functional branding to representational branding:
Customer Loyalty: Consumers are more likely to be loyal to brands that resonate with their attitudes and ways of living, not just functional benefits.
Higher Perceived Value: Brands that occupy a psychological or philosophical space in consumers’ minds can command premium pricing.
Emotional Connection: Brands positioned closer to the representational end of the spectrum forge deeper emotional connections, fostering long-term customer relationships and advocacy.
Market Differentiation: It becomes easier for brands that stand for something beyond their products to create differentiation in competitive markets.
4. When to Move to the Next Level
Determining the right time for a brand to evolve to the next level is intriguing. The answer lies in analyzing category communications in the market. Assess where most brands are currently positioned; for instance, many detergent brands in Pakistan focus on product benefits. When a new brand decides to enter the market, it may differentiate itself at the psychological territory/ benefits level.
Advertising literacy levels vary across markets and categories. In Pakistan’s detergent category, advertisers have primarily educated consumers about functional benefits like stain removal, economy of use, fragrance, and the novelty of clothes. When the market gets saturated with similar messages, it’s time for a brand that really wants to grow to consider moving to the next higher level.
5. Case Studies in Elevating Brand
Many brands have successfully moved to the next level when they determined it was the right time for such a transition. Some notable examples include:
Apple: Originally positioned in psychological territory as ‘tools for the creative minds’ with their Think Different tagline, Apple has now progressed to be a lifestyle icon at the attitudes, values, and way of life level
Nike: Once positioned at the product benefits level, offering superior performance, Nike has now embodied a ‘winning spirit’ at higher levels of branding
Coca-Cola: Initially marketed as a refreshing beverage at the product benefit level, Coca-Cola now symbolizes happiness, celebration, and global solidarity.
5. Conclusion
Branding is a journey that transforms a name into a philosophy. Companies that focus only on product attributes risk becoming lost, while those that establish deeper connections with consumers can achieve iconic status. The evolution from a functional brand to a representational one requires strategic planning, consistent messaging, and a deep understanding of human psychology. In today’s competitive landscape, the brands that succeed are not just selling products—they are selling identities, values, and dreams.
